11/05/2014

Five Benefits of Keeping Our Businesses Small

The perception among many businesspeople is that bigger is better. While it is true that bigger business tend to generate larger revenue, we should make sure that it is a more appropriate and safer choice. It should be noted that more employees and bigger office could translate into more work. Bigger business could also suffer from higher financial loss.

In fact, most companies in developed countries have less than fifty employees and they employ the largest number of workforce. Running small businesses is acceptable as long as we are able to continue deliver desirable outputs for customers. Here are five benefits

of starting small and simple at first:

1. Less bureaucracy and red tape: Chain of command is simpler in small business and approval procedure should be pretty brief. On larger companies, more people get involved and they can slow down or even stall the decision-making process. Specific resources are available and accessible at a moment’s notice with easier turnaround and quick to accomplish tasks.

2. Better flexibility: Small businesses can better handle last-minute request and amend contracts faster. This can be achieved through less strict and more flexible corporate policies. It is also easy to adapt to changing client’s requirements. Without the presence of rigid regulations and rules that restrict large companies, small business could tailor and custom their solutions for specific clients.

3. More cost effective: Small businesses can be incredibly cost effective. Obviously, they have less overhead and this can translate to much lower fees. Experience won’t be a concern because associates at the senior levels usually have prior employment at bigger companies. Many owners of small business actually compete with their previous employers, but at smaller scale. This also allows consumers to pay less for the same level of output and expertise.

4. More manageable clients: Small businesses usually have fewer clients and this allow them to devote more attention to each. Consumers’ needs will be more of a priority for small business as client retention is very important for them. Consumers are also more likely to communicate with senior-level management, which can make the transaction much smoother to operate.

5. More caring: Small businesses often embrace a better culture of caring by creating family-oriented environment. Work hours can be more flexible and the entire climate should be less cutthroat. This could lead to higher job satisfaction and happier employees. For clients, this would translate to higher quality service and keener attention to details.